Skip to main content

Jim Cramer Talks with Palo Alto CEO Nikesh Arora

‘If I get hacked, all hell breaks loose,’ CEO tells Cramer.

Boards of directors for companies large and small will need to learn a lot more about cybersecurity, Nikesh Arora, chairman and CEO of Palo Alto Networks PANW, told Jim Cramer on a recent episode of the Mad Money TV show.Jim Cramer Talks with Palo Alto CEO Nikesh Arora

Boards of directors for companies large and small will need to learn a lot more about cybersecurity, Nikesh Arora, chairman and CEO of Palo Alto Networks PANW, told Jim Cramer on a recent episode of the Mad Money TV show.

Arora told Cramer that the board of Palo Alto Networks had recently appointed its own security committee.

“We are in the security business, so they need to make sure I’m secure. If I get hacked, all hell breaks loose,” Arora told Cramer.

Arora told Cramer that executives of companies have had to learn quickly about cybersecurity, as the problem has increased rapidly in magnitude. He predicted that 30-50 percent of boards of directors of firms on the S&P 500 would have to create a security committee in the next several years.

TheStreet Recommends

Arora told Cramer that executives of companies have had to learn quickly about cybersecurity, as the problem has increased rapidly in magnitude. He predicted that 30-50 percent of boards of directors of firms on the S&P 500 would have to create a security committee in the next several years.

Real Money’s Bruce Kamich recently updated his analysis of Palo Alto’s charts, saying they continue to look bullish.

Palo Alto is now the largest cloud security provider, Cramer said. Cramer said Palo Alto was way ahead on predicting hybrid workplaces for the long term. Arora said Palo Alto Networks had been 8-24 months ahead of the curve in predicting that the work for home movement would outlast the pandemic itself. With so many people working from home, Palo Alto worked to expand protection of the office to include home.

That's why the company has expanded into home security with routers that have security built in. Arora said the company realized that work only at work was a concept dated to the punchcard says when the line would stop if one worker didn’t come in.

Arora noted that the company had its best first quarter in five years, suggesting that companies are finally beginning to take security seriously. According to research, when a hacker discovers a vulnerability, the mean time companies have to respond and prevent the attack is five hours. Arora said that's why it’s essential to move to the cloud, where Palo Alto can protect companies in under one minute.

Cybersecurity is the biggest risk companies face in today's world, Arora concluded, and that's why boards of directors need to be well versed on the threats and the solutions.

Get more trading strategies and investing insights from the contributors on Real Money.